Suzuki has bought an addition 5% stake in Maruti. This makes Suzuki to have 55% stake in Maruti. Suzuki requires enough of approvals in this acquisition. This acquisition has also made Maruti to increase its unit capacity from 1 million units to 1.8 million unit. Maruthi comprised 80% of Suzuki’s stake in it and is the largest overseas acquisition to Suzuki and over to that Suzuki gets most of its profit from Maruti .In fact it is Maruti sells more units than Suzuki.
Since Government also has stake in Maruti and Suzuki is an foreign entity it requires fair bit of approvals from RBI and even SEBI’s .
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